Advice on EVIL Fee charging Debt Management Company

crapwithcash82

Hi All, I wondered if anyone could help me with the below. I have been in a DMP with a stupid fee paying company for around the last two years. The company, who I have no problem naming and shaming is Debt Free Helpline, or DFH. At the beginning of the agreement they took my first three months payments of £308 as their "fee". Which at the time, because I didn't have the wealth of knowledge I now have from this site, I just accepted.

I recently decided to take back control of my creditors to try and make additional payments etc and to help me to feel more in control. I was working out the totals of what I pay them via the DMC today as I get paid tomorrow and having totalled up the monthly payment to the debt management company, there is a difference of £46.20 each month... that is I pay them £308 each month, but the total they have been paying my creditors is only a total of £261.80!! I've been in this plan for a little over 2 years so have effectively lost around £554!!! :eek:

Does anyone know where I would stand if I tried to claim this back? I am so angry at this company, but also at myself for not really double checking the figures until now. Is there anything I can do to try and get this back or should just kiss my £500-ish goodbye....

As far as I remember there was nothing obvious in the contract about them taking a monthly cut, only the first months payments as their fee. I'm tempted to call them up but I don't know if getting into a conversation on the phone is a good idea.....perhaps I should write to them and ask where the £46.20 goes each month?

Any advice would be greatly appreciated.....

dancingfairy

Sadly I think they probably can get away with this . You really need to check any agreement/contract you signed with them and see what it says.
You may be able to complain to someone (not sure who Office of Fair Trading / Trading Standards or the Financial Ombudsman about misselling but you would need to look into it).
If you don't have a contract (presuming you signed one - I think you can ask them for a copy (the dmp co. ) - although there is no guarantee it hasn't been altered at all - not saying this company will have but other companies have been known to forge documents ).
df

Wol2

Talk to one of these guys.....they should be able to help advise you on how to extract yourself from this company and set up a no fee DMP

Free & impartial debt advice: National Debtline | Consumer Credit Counselling Service (CCCS) | Find your local CAB

(Thanx Fermi...I cut and pasted from your siggie )

as to trying to recover the money - you may need legal advice and a copy of your small print term and conditions that you signed up to with the company...

http://www.communitylegaladvice.org.uk/ or they can be contacted on 0845 345 4345

..dancing fairy has dealt with reporting to OFT etc

Good luck

Wol2
xx

dancingfairy

I agree with WOL the first thing is to extract yourself from this company and stop paying good money after bad - then tackle the issue of trying to reclaim money.
df

crapwithcash82

dancingfairy wrote: »

I agree with WOL the first thing is to extract yourself from this company and stop paying good money after bad - then tackle the issue of trying to reclaim money.
df

Thanks for your replies.... I gave them the 30 days notice last month so everything is in place directly between me and my creditors now. The payments are set up to go direct from my bank account to the credit accounts. The standing order to the DMP company has been cancelled so they won't be getting another penny out of me!!

I'll have to try and find the contract I signed, I know I have a copy of it somewhere, will just have to try and put my hands on it.

starstudded

thanks for the warning.